Innovation in the pension system: in 2015

In 2015 series of events and changes will happen in the Russian pension system that will affect on all participants of the system of mandatory pension insurance: current and future pensioners, as well as Russian employers.

New method for the formation of pension rights of citizens and the calculation of pensions in mandatory pension insurance system, so-called "the new pension formula" is activated on January 1, 2015. The labor pension is transformed into two types of pensions: insurance pension and funded pension.

For the calculation of pension under the new rules the concept of "individual pension coefficient" (the pension point) is introduced. The pension point evaluates each year of the citizen’s labor activity. To be eligible for appointment of insurance old-age pension, you must have 30 or more pension points. But this rule will be operational from 2025 in full, so it will be enough to have 6.6 points in 2015.

Requirements for a minimum employment period to be eligible for an old-age pension are also changed. It will rise from the existing 5 up to 15 years. However, transitional period is designated as in the case of the pension points: in 2015 required minimum employment period accounts 6 years and it will gradually increase every year by 1 year during 10 years.

It is worth noting that according to the new pension formula in addition to employment period, socially significant periods of human life will be awarded by points, such as military service, child rearing leave, disabled child rearing leave, citizen over 80 years old care leave etc. →